With inflation on the rise, so are prices of products at Kansas small businesses

Published: Sep. 17, 2023 at 1:53 PM CDT
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TOPEKA, Kan. (WIBW) - With inflation on the rise so are the prices of products at many small businesses across the Sunflower State according to a new report from the NFIB.

The National Federation of Independent Businesses Kansas Chapter announced that the small business optimism index decreased by 0.6 of a point in August leaving the final rating for the month at 91.3. This is the 20th month in a row that optimism has been reported below the 49-year average of 98. Meanwhile, 23% of small business owners reported that inflation was the single most important issue they faced - up two points from the previous month. This also comes as 27% of sellers increase prices to adjust for inflation.

“With small business owners’ views about future sales growth and business conditions discouraging, owners want to hire and make money now from strong consumer spending,” said NFIB Chief Economist Bill Dunkelberg. “Inflation and the worker shortage continue to be the biggest obstacles for Main Street.”

While state-specific data is not available, Director Dan Murray said inflation continues to make it difficult to own and operate a small business.

“For Main Street, inflation has yet to be tamed,” Murray noted. “Between the pressure on prices and the worker shortage, the challenges of this economy continue to make it difficult to own and operate a small business.”

According to the Federation, fewer small business owners are holding faith that business conditions will get better in the next six months. Meanwhile, 40% of owners reported job openings that were hard to fill and they still do not expect real sales to increase.

NFIB also said that 23% of small business owners admitted to raising prices due to inflation as 27% of small businesses raised their prices in general. Only 12% reported lower average selling prices. Price hikes were the most frequent in finance, construction, retail and wholesale.

Meanwhile, 36% of small businesses reported they raised compensation while 26% plan to raise pay in the next three to five months.

NFIB noted that it has collected small business economic trends with quarterly surveys since 1973 and monthly surveys since 1986.